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CWA Files Letters Calling for Regulators to Investigate Verizon’s Refusal to Invest in Traditional Landline Upkeep

 Verizon told FCC it spends less than one percent of the average phone and DSL customer’s rate on upkeep of the network 

Legislators Join Call to Investigate Verizon

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WASHINGTON- The Communications Workers of America (CWA) today announced they were filing letters with telephone regulators in six states and Washington, DC calling on them to open investigations into the deterioration of Verizon’s copper landline networks.  In July, Verizon admitted in a letter to the FCC that it had only spent $200 million over the last seven years to maintain its copper landline network in eleven states and the District of Columbia.  

The $200 million investment is less than one percent of the amount phone and DSL customers pay Verizon for service, which means the average customer is financing wireless and fiber expansion, rather than the upkeep of the network they rely on.

In light of the new evidence presented by CWA to regulators, scores of legislators across the region joined the call for renewed investigation into Verizon’s abandonment of the copper network. 

“Verizon pulls in more than a billion dollars in profits each month.  $200 million represents less than half a percent of the $50 billion Verizon spent on its wireline network from 2008 to 2014 and less than one percent of what they charge the average voice customer,” said Dennis Trainor, Vice President of District 1 of the Communications Workers of America. “We support Verizon’s expansion of FiOS, but the company also has a legal obligation to provide safe, reliable service over its traditional landline network.”

To put the $200 million in perspective:

  • $200 million represents 0.39 percent of the $50.7 billion Verizon spent on its wireline network from 2008 to 2014. Nearly 100 percent of Verizon’s wireline investment was spent to build its fiber network.[1] CWA supports Verizon’s FiOS expansion. But where Verizon has refused to deploy its all-fiber FiOS network, Verizon has the statutory obligation to maintain its copper plant to provide safe, reliable service. (Verizon spent $59.9 billion on its wireless network, 2008-2014.)
  • The $200 million that Verizon spent over the past seven years on its copper network amounts to an average of $28.6 million a year per year across its entire landline footprint.
  • CWA estimates that Verizon currently has upwards of eight million retail customers on its traditional copper landline network.  (Verizon no longer publicly reports this number.) Using this figure, Verizon’s annual spending on its copper network amounts to about $3.50 a line per year for poles, cables, wires, pedestals, terminals, batteries, and other plant and equipment needed to build, maintain, repair, and service its copper network. (This is a conservative estimate since Verizon had many more copper customers in earlier years.)
  • Across the Verizon landline footprint, residential and single-line business customers pay between $300 and $370 a year for basic voice service and about $400 a year for DSL service.  Even using our conservative calculations, Verizon spends less than one percent of the rate it charges for basic voice service and less than half a percent of the rate it charges for a voice/DSL bundled service on the upkeep of its copper network.
  • Verizon spent $200 million over a seven-year period on a copper network that covers the vast majority of the population in eight states — New York, Massachusetts, Rhode Island, New Jersey, Delaware, Pennsylvania, Maryland, Virginia, plus Washington, D.C., and parts of California, Texas, and Florida. (Prior to 2010, the Verizon footprint included an additional 4.8 million lines in 14 additional states.) 

CWA’s letters also point to Verizon’s peer to peer online forums and recent FCC filings by Verizon customers alleging that the company is neglecting copper facilities and lines. Frontline Verizon employees are also chiming in, saying that they’ve seen firsthand how Verizon’s policies, procedures and inadequate investments have led to the virtual abandonment of the copper network and is keeping quality services from paying customers.

These letters come after a series of worker led protests and rallies throughout the Northeast calling on Verizon to negotiate a fair contract with its employees. Verizon makes $1 billion in profits every month and has refused to bargain constructively with its 39,000 employees over the terms of its contract, continuing to insist on the ability to outsource more jobs, increase health care costs by thousands of dollars a person and slash retirement security.

Background Contract Negotiations

39,000 workers are currently working without a contract at Verizon.  Fortune Magazine ranked Verizon the 15th largest corporation in America in 2014, with revenues of $127 billion, profits of $9.6 billion, and market capitalization of $198.4 billion. Verizon had profits of $28 billion over the last five years, and paid its top five executives $249 million during that time. 

On July 21st, Verizon reported profits of $4.4 billion in 2Q2015 on revenues of $32.2 billion. This came on top of $4.2 billion in profits in 1Q2015, which means Verizon has made $1 billion in profits every month for the last 18 months. The company also reported that during the first six months of 2015 it has paid out over $9.3 billion to shareholders in dividends and stock buybacks, an increase of almost $5.8 billion over the first half of last year. In the Wireline division, Operating Cash Flow rose to 23.5%, and operating income doubled, from 2.6% to 5.3%. FiOS continues to expand and succeed, now constituting 79% of Verizon consumer revenues on the wireline side, and achieving penetration rates of 35.7% for video and 41.4% for internet in markets where it is competing. 

Verizon has not significantly moved off its outrageous initial bargaining demands, made on June 22nd, which includes the following proposals:

  • Completely eliminating job security and gaining the right to transfer workers at will anywhere in the company’s footprint.
  • Increasing workers’ health care costs by thousands of dollars per person, despite the fact that negotiations in 2011-2012 have cut the company’s health care costs by tens of millions of dollars over the life of the past contract.
  • Removing any restrictions on the company’s right to contract out and offshore union jobs.  This comes on top of Verizon’s outsourcing of thousands of jobs in recent years.
  • Slashing retirement security.
  • Reducing overtime and differential payments.
  • Eliminating the Family Leave Care plan, which provides unpaid leave to care for sick family members or care for a newborn.
  • Eliminating the Accident Disability Plan, which provides benefits to workers injured on the job.

CWA is also negotiating for about 100 Wireless technicians in New York State and 75 retail employees in Brooklyn and Everett, MA.  Verizon’s Wireless operation is even more profitable than Verizon’s wireline operations.  Yet Verizon is not offering major improvements in the technician’s contract and is refusing to negotiate a new contract including major wage and benefit improvements for the retail employees in Brooklyn and Everett, MA.

A damning audit of Verizon’s FiOS rollout in New York City found that Verizon has failed to meet its promise to deliver high-speed fiber optic internet and television to everyone in the city who wanted it.  During its negotiations for a city franchise, Verizon promised that the entire city would be wired with fiber optic cables by June 2014 and that after that date, everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming that it had wired the whole city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found that Verizon stonewalled the audit process. 

In addition, rates for basic telephone service have increased in recent years, even as Verizon has refused to expand their broadband services into many cities and rural communities, and service quality has greatly deteriorated. Verizon’s declining service quality especially impacts customers who cannot afford more advanced cable services, or who live in areas with few options for cable or wireless services. 

In 2005, New York’s Public Service Commission (PSC) eliminated automatic fines for Verizon’s telephone service quality failures, reasoning that “competition” would improve services.  Instead, service quality plunged. In the 3rd quarter of 2010, Verizon cleared only 1.2% of out of service complaints within 24 hours, almost 79 percentage points lower than the PSC’s 80% requirement.  Rather than reverse course, the PSC changed its measurements, cutting out 92% of customers from service quality measurements and consolidating 28 repair service bureaus into 5 regions.  On paper, terrible service quality was almost miraculously transformed. In reality, service quality continued to decline. 

Verizon Walks Away From $550M+ In Federal Broadband Money

Verizon Only Telecom Company to Do So, Exacerbating Digital Divide 

Millions in Eight States and DC to Remain Without Access to High-Speed Broadband

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WASHINGTON- Verizon today became the only major U.S. telecommunications company to turn down federal funding to build broadband in unserved, primarily rural, communities, leaving many residents in eight states and the District of Columbia without access to vital communications options.  The company was offered $568 million over six years by the Federal government to bring broadband to 270,000 locations in Washington, DC, Delaware, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Rhode Island, and Virginia. 

“Verizon’s track record is clear,” said Bob Master, Assistant to the Vice President of District One of the Communications Workers of America.   “Even while raking in a billion dollars per month in profits, Verizon is turning its back on underserved communities by refusing federal subsidies to expand high-speed internet access. Instead, its top priority is slashing job and retirement security for its employees and eliminating benefits for workers  injured on the job.”

In April, the Federal Communications Commission launched Phase II of the Connect America Fund.  The FCC offered major telecommunications companies nearly $1.7 billion a year over six years to provide high-speed internet and voice to unserved, primarily rural, communities.  The carriers had until August 27 to decide whether to participate.  The program was based on the successful universal service program, which ensured telephone service was available in rural communities.

Verizon accepted funding for two states where it is selling its network to Frontier Communications and rejected funding in the other states it operates.  

Verizon’s attitude toward the federal subsidies is sadly consistent with its approach in New York State, where the company refuses to avail itself of Governor Cuomo’s $500 million New New York Broadband Fund, which offers up to 50% subsidies to companies willing to build high-speed service in underserved areas.  For years, Verizon has steadfastly refused to bring its high-speed internet service (or FiOS) to areas like Buffalo, Syracuse, Albany, Rome, Utica and numerous other upstate New York cities, as well as much of Eastern Suffolk.  At a series of hearings held by New York State, elected officials from Buffalo, Syracuse, Albany, the North Country, the Southern Tier and the Hudson Valley decried the lack of FiOS in their communities.

Campaigns in Pennsylvania and Massachusetts have also called for FiOS to be built in their communities.

A damning audit of Verizon’s FiOS rollout in New York City found that Verizon has failed to meet its promise to deliver high-speed fiber optic internet and television to everyone in the city who wanted it.  During its negotiations for a city franchise, Verizon promised that the entire city would be wired with fiber optic cables by June 2014 and that after that date, everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming that it had wired the whole city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found that Verizon stonewalled the audit process.

At the same time, Verizon has been letting its traditional phone network deteriorate.  In 2005, New York’s Public Service Commission (PSC) eliminated automatic fines for Verizon’s telephone service quality failures, reasoning that “competition” would improve services.  Instead, service quality plunged. In the 3rd quarter of 2010, Verizon cleared only 1.2% of out of service complaints within 24 hours, almost 79 percentage points lower than the PSC’s 80% requirement.  Rather than reverse course, the PSC changed its measurements, cutting out 92% of customers from service quality measurements and consolidating 28 repair service bureaus into 5 regions.  On paper, terrible service quality was almost miraculously transformed. In reality, service quality continued to decline. 

CWA Launches New Ads Slamming Verizon’s Failures Ahead Of Possible Strike

Despite $18 Billion in Profits in Last 18 Months, Verizon Still Insisting on Slashing Job Security, Health Care, and Retirement Security

Union Stands Ready to Bargain; Workers Prepared to Strike if Needed 

New York – The Communications Workers of America (CWA) announced today a series of eight radio ads slamming Verizon’s failure to build out universal FiOS broadband across the East Coast as it outsources jobs and cuts workers’ pay. The 30-second ads are scheduled to begin running Friday across New York, New Jersey, Massachusetts, Pennsylvania, Maryland, Virginia, Delaware and Washington D.C. [full scripts below and audio files can be heard here].

Listen to this ad from New York (other states below). 

The ads come after Verizon allowed its labor contract to expire on Aug. 1 at midnight, leaving 39,000 CWA and IBEW represented telecom workers from Massachusetts to Virginia without a labor agreement. The company has demanded harsh job security, health care and retirement security concessions from its workers, despite making profits of $28 billion over the last five years and paying its top five executives $249 million during that time. 

“Verizon continues to play games with its workers and its customers. Despite our best efforts, the company refuses to engage in a serious negotiation towards a fair contract for its workers.  At the same time, its customers continue to suffer because of decaying infrastructure and poor service quality. Verizon has earned $1billion each month in profits for the last 18 months, while steps to build its high-speed FiOS network into low-income cities like Baltimore, Buffalo and Bethlehem, PA have yet to be seen,” said Bob Master, Legislative and Political Director for CWA District One. “Enough is enough. It’s time for Verizon to give their workers a fair deal and give their customers the service they deserve. It’s time for them to come to the bargaining table and negotiate.” 

Verizon has not significantly moved off its outrageous initial bargaining demands, made on June 22nd, which includes the following proposals:

  • Completely eliminating job security and gaining the right to transfer workers at will anywhere in the company’s footprint.
  • Increasing workers’ health care costs by thousands of dollars per person, despite the fact that negotiations in 2011-2012 have cut the company’s health care costs by tens of millions of dollars over the life of the past contract.
  • Removing any restrictions on the company’s right to contract out and offshore union jobs.  This comes on top of Verizon’s outsourcing of thousands of jobs in recent years.
  • Slashing retirement security.
  • Reducing overtime and differential payments.
  • Eliminating the Family Leave Care plan, which provides unpaid leave to care for sick family members or care for a newborn.
  • Eliminating the Accident Disability Plan, which provides benefits to workers injured on the job.

At the same time, Verizon refuses to build out FiOS to many underserved communities up and down the East Coast, and has abandoned upkeep of the traditional landline network, leading to extensive service problems for consumers. In these negotiations, the union members’ interest is linked directly to the public interest, since their jobs involve maintaining quality service on traditional landlines and building and servicing Verizon’s state of the art FiOS broadband network. 

Background on negotiations with Verizon

39,000 workers are currently negotiating new contracts at Verizon. Fortune Magazine ranked Verizon the 15th largest corporation in America in 2014, with revenues of $127 billion, profits of $9.6 billion, and market capitalization of $198.4 billion. Verizon had profits of $28 billion over the last five years, and paid its top five executives $249 million during that time. 

On July 21st, Verizon reported profits of $4.4 billion in 2Q2015 on revenues of $32.2 billion. This came on top of $4.2 billion in profits in 1Q2015, which means Verizon has made $1 billion in profits every month for the last 18 months. The company also reported that during the first six months of 2015 it has paid out over $9.3 billion to shareholders in dividends and stock buybacks, an increase of almost $5.8 billion over the first half of last year. In the Wireline division, Operating Cash Flow rose to 23.5%, and operating income doubled, from 2.6% to 5.3%. FiOS continues to expand and succeed, now constituting 79% of Verizon consumer revenues on the wireline side, and achieving penetration rates of 35.7% for video and 41.4% for internet in markets where it is competing.

A damning audit of Verizon’s FiOS rollout in New York City found that Verizon has failed to meet its promise to deliver high-speed fiber optic internet and television to everyone in the city who wanted it.  During its negotiations for a city franchise, Verizon promised that the entire city would be wired with fiber optic cables by June 2014 and that after that date, everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming that it had wired the whole city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found that Verizon stonewalled the audit process. 

In addition, rates for basic telephone service have increased in recent years, even as Verizon has refused to expand their broadband services into many cities and rural communities, and service quality has greatly deteriorated. Verizon’s declining service quality especially impacts customers who cannot afford more advanced cable services, or who live in areas with few options for cable or wireless services.

(Please take a moment to sign the pledge to Stand with Verizon Workers, located at the top right of this post’s page.)

CWA-blue-line

CWA Verizon FiOS Radio Scripts Text

A.  NEW YORK

B.  MASSACHUSETTS

 

C.  NEW JERSEY

 

D.  PENNSYLVANIA

E.  MARYLAND

F. VIRGINIA 

 

G.  DELAWARE

H.  District of Columbia

 

Verizon’s Union Workers To Stay On The Job And Continue To Fight For A Fair Contract

 Despite $18 Billion in Profits in Last 18 Months, Verizon Still Insisting on Slashing Job Security, Health Care, and Retirement Security;

Unions Will Continue to Fight for Good Jobs, FiOS Buildout, and Quality Service

With Company Refusing to Bargain Seriously, Union Bargaining
Teams Leave Round-the-Clock Talks; Unions Remain Prepared to Bargain

New York – Leaders of the Communications Workers of America and the International Brotherhood of Electrical Workers announced that 39,000 Verizon workers up and down the East Coast will work without a contract when their collective bargaining agreement expires at midnight tonight, and continue their fight for a fair agreement while on the job.  

The union leaders also announced that they will leave the sites of round-the-clock bargaining in Philadelphia and Rye, NY, where union and management teams have been meeting since June 22nd in what has so far been a vain attempt to reach a contract.  The unions have informed the company, however, that they are prepared to schedule regular bargaining sessions, and urged the company to begin bargaining constructively.

“Despite our best efforts, Verizon refuses to engage in serious bargaining towards a fair contract,” said Dennis Trainor, Vice President for CWA District One, which represents Verizon workers in New Jersey, New York and Massachusetts.  “Verizon has earned $1billion a month in profits over the last 18 months, and paid its top handful of executives $249 million over the last 5 years, but continues to insist on eliminating our job security and driving down our standard of living.  We’re not going to take it, and we’re going to keep the fight going while we’re on the job.”

“The company has barely moved off its initial June 22nd proposal that made outrageous demands of Verizon workers.  If this company is serious about reaching an agreement, it needs to start bargaining constructively and now, “said Ed Mooney, Vice President for CWA District 2-13, whi ch represents Verizon workers from Pennsylvania to Virginia.  “Right now there isn’t even anyone across the table from us who’s got the power to make any decisions.”   

Verizon has not significantly moved off its outrageous initial bargaining demands, made on June 22nd, which includes the following proposals: 

  • Completely eliminating job security and gaining the right to transfer workers at will anywhere in the company’s footprint.
  • Increasing workers’ health care costs by thousands of dollars per person, despite the fact that negotiations in 2011-2012 have cut the company’s health care costs by tens of millions of dollars over the life of the past contract.
  • Removing any restrictions on the company’s right to contract out and offshore union jobs.  This comes on top of Verizon’s outsourcing of thousands of jobs in recent years.
  • Slashing retirement security.
  • Reducing overtime and differential payments.
  • Eliminating the Family Leave Care plan, which provides unpaid leave to care for sick family members or care for a newborn.
  • Eliminating the Accident Disability Plan, which provides benefits to workers injured on the job.

At the same time, Verizon refuses to build out FiOS to many underserved communities up and down the East Coast, and has abandoned upkeep of the traditional landline network, leading to extensive service problems for consumers.  In these negotiations, the union members’ interest is linked directly to the public interest, since our jobs involve maintaining quality service on traditional landlines and building and servicing Verizon’s state of the art FiOS broadband network.  Even in New York City, where Verizon pledged to make FiOS available to every customer by the end of 2014, the City’s Department of Information Technology and Telecommunications issued a report finding that the company was evading the buildout commitments it made under its 2008 video franchise agreement.

“86% of our members have voted to authorize a strike if necessary, but we’re not going to walk into a trap set by Verizon.  We’ll strike when we think it is the right time to strike, and that is not tonight,” Mooney added.  “The ball is in their court – we are waiting for them to get serious.”

Background on negotiations

39,000 workers are currently negotiating new contracts at Verizon.  Fortune Magazine ranked Verizon the 15th largest corporation in America in 2014, with revenues of $127 billion, profits of $9.6 billion, and market capitalization of $198.4 billion. Verizon had profits of $28 billion over the last five years, and paid its top five executives $249 million during that time. 

On July 21st, Verizon reported profits of $4.4 billion in 2Q2015 on revenues of $32.2 billion. This came on top of $4.2 billion in profits in 1Q2015, which means Verizon has made $1 billion in profits every month for the last 18 months. The company also reported that during the first six months of 2015 it has paid out over $9.3 billion to shareholders in dividends and stock buybacks, an increase of almost $5.8 billion over the first half of last year. In the Wireline division, Operating Cash Flow rose to 23.5%, and operating income doubled, from 2.6% to 5.3%. FiOS continues to expand and succeed, now constituting 79% of Verizon consumer revenues on the wireline side, and achieving penetration rates of 35.7% for video and 41.4% for internet in markets where it is competing.

A damning audit of Verizon’s FiOS rollout in New York City found that Verizon has failed to meet its promise to deliver high-speed fiber optic internet and television to everyone in the city who wanted it.  During its negotiations for a city franchise, Verizon promised that the entire city would be wired with fiber optic cables by June 2014 and that after that date, everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming that it had wired the whole city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found that Verizon stonewalled the audit process.  

In addition, rates for basic telephone service have increased in recent years, even as Verizon has refused to expand their broadband services into many cities and rural communities, and service quality has greatly deteriorated. Verizon’s declining service quality especially impacts customers who cannot afford more advanced cable services, or who live in areas with few options for cable or wireless services.

In 2005, New York’s Public Service Commission (PSC) eliminated automatic fines for Verizon’s telephone service quality failures, reasoning that “competition” would improve services.  Instead, service quality plunged. In the 3rd quarter of 2010, Verizon cleared only 1.2% of out of service complaints within 24 hours, almost 79 percentage points lower than the PSC’s 80% requirement.  Rather than reverse course, the PSC changed its measurements, cutting out 92% of customers from service quality measurements and consolidating 28 repair service bureaus into 5 regions.  On paper, terrible service quality was almost miraculously transformed. In reality, service quality continued to decline. 

Communications Workers of America Statement on Verizon Contract Talks

 CWA-blue-line

New York – With collective bargaining agreements between Verizon and 39,000 members of the Communications Workers of America (CWA) and International Brotherhood of Electrical Workers (IBEW) expiring at midnight tonight, the Communications Workers of America announced today that they had put a constructive, comprehensive new bargaining proposal across the table at negotiations in Rye, NY that would offer the company significant healthcare and retiree cost savings. The proposal was made last night and union bargainers are currently waiting for a response from Verizon.

“It’s time for management to get serious, and back off its insistence on slashing the living standards of our members,” said Dennis Trainor, Vice President for CWA District One, which covers Verizon workers from New Jersey to Massachusetts.  “Verizon made $1 billion in profits every single month for 18 straight months and paid their top executives $249 million in the last five years.  Only their unrestrained corporate greed stands in the way of a fair contract settlement.” 

In Philadelphia, the bargaining committee in negotiations for the mid-Atlantic bargaining units has reported it has yet to see any indication of substantive movement from the Company.

“The company hasn’t moved off its initial June 22nd proposal that made outrageous demands of Verizon workers.  If this company is serious about reaching an agreement, it needs to start bargaining constructively and now, “said Ed Mooney, President for CWA District 2-13, whi ch represents Verizon workers from Pennsylvania to Virginia.  “Right now there isn’t even anyone across the table from us who’s got the power to make any decisions.”   

Verizon has refused to budge from its outrageous initial bargaining proposal, made on June 22nd, which includes the following contract changes: 

  • Completely eliminating job security and gaining the right to transfer workers at will anywhere in the company’s footprint.
  • Increasing workers’ health care costs by thousands of dollars per person, despite the fact that negotiations in 2011-2012 have cut the company’s health care costs by tens of millions of dollars over the life of the past contract.
  • Removing any restrictions on the company’s right to contract out and offshore union jobs.  This comes on top of Verizon’s outsourcing of thousands of call center jobs in recent years.
  • Slashing retirement security.
  • Reducing overtime and differential payments.
  • Eliminating the Family Leave Care plan, which provides paid leave to care for sick family members or care for a newborn.
  • Eliminating the Accident Disability Plan, which provides benefits to workers injured on the job.

At the same time, Verizon refuses to build out FiOS to many underserved communities up and down the East Coast, and has abandoned upkeep of the traditional landline network, leading to extensive service problems for consumers.  In these negotiations, the union members’ interest is linked directly to the public interest, since our jobs involve maintaining quality service on traditional landlines and building and servicing Verizon’s state of the art FiOS broadband network.  Even in New York City, where Verizon pledged to make FiOS available to every customer by the end of 2014, the City’s Department of Information Technology and Telecommunications issued a report finding that the company was evading the buildout commitments it made under its 2008 video franchise agreement. 

“86% of our members have voted to authorize a strike if necessary, but we remain hopeful that Verizon will negotiate a contract that increases maintenance of landlines, builds new high-speed fiber and pays the men and women who work for Verizon a decent wage with healthcare and retirement security,” Mooney added.  “The ball is in their court – we will see tonight if they are serious.” 

Background on Contract Negotiations 

39,000 workers are currently negotiating new contracts at Verizon.  Fortune Magazine ranked Verizon the 15th largest corporation in America in 2014, with revenues of $127 billion, profits of $9.6 billion, and market capitalization of $198.4 billion. Verizon had profits of $28 billion over the last five years, and paid its top five executives $249 million during that time. 

On July 21st, Verizon reported profits of $4.4 billion in 2Q2015 on revenues of $32.2 billion. This came on top of $4.2 billion in profits in 1Q2015, which means Verizon has made $1 billion in profits every month for the last 18 months. The company also reported that during the first six months of 2015 it has paid out over $9.3 billion to shareholders in dividends and stock buybacks, an increase of almost $5.8 billion over the first half of last year. In the Wireline division, Operating Cash Flow rose to 23.5%, and operating income doubled, from 2.6% to 5.3%. FiOS continues to expand and succeed, now constituting 79% of Verizon consumer revenues on the wireline side, and achieving penetration rates of 35.7% for video and 41.4% for internet in markets where it is competing.

Related:

CWA Launches Radio Ads in Seven Regions Slamming Verizon’s Failure to Develop FiOS Broadband Service

New York State Mayors Join CWA at Bargaining Table, Tell Verizon to Stop Stalling on FiOS

New York State Mayors Join CWA at Bargaining Table, Tell Verizon to Stop Stalling on FiOS

 Elected Officials Representing More Than a Million NYers Write Letters to Verizon Leadership, Demand Action

With Days Remaining Before Contract Expiration, CWA and IBEW Demand Good Jobs, and Verizon Commitment to Good Service and FiOS for All 

Rye, New York – With days remaining before the contract between Verizon and its 39,000 unionized workers, Syracuse Mayor Stephanie Miner and Kingston Mayor Shayne Gallo joined the workers at a bargaining session with Verizon in Rye, New York.  At the same time, four other elected officials from across New York State wrote letters calling on Verizon to stop ignoring their communities’ need for high-speed internet and television service. 

The unprecedented visit and supportive letters from the Mayors of Albany, Utica and Rome and the Town Supervisor of Brookhaven demonstrate the common cause between the workers and customers around the state who are fed up with Verizon leaving them behind.  Verizon is refusing to build its state-of-the-art FiOS network in lower-income areas, leaving hundreds of thousands of New Yorkers at the mercy of their local cable monopoly, while at the same time letting its copper landline network deteriorate. 

In New York City, a damning audit of Verizon’s FiOS rollout found that Verizon has failed to meet its promise to deliver high-speed fiber optic internet and television to everyone in the city who wanted it.  During its negotiations for a city franchise, Verizon promised that the entire city would be wired with fiber optic cables by June 2014 and that after that date, everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming that it had wired the whole city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found that Verizon stonewalled the audit process.  

The calls to build out FiOS come as the build-out of FiOS has become a bargaining issue between the Communications Workers of America and International Brotherhood of Electrical Workers and Verizon as they negotiate a new contract.  The contract expires at 12 midnight on Saturday August 1 and covers 39,000 CWA and IBEW represented telephone workers from Massachusetts to Virginia.

Read more about possible Verizon strike and the radio ads CWA is running about “Verizon’s Failure to Develop FiOS Broadband Service.

CWA Launches Radio Ads in Seven Regions Slamming Verizon’s Failure to Develop FiOS Broadband Service

Ads Come as Thousands Rallied Last Saturday to Reject Verizon’s Demands to Eliminate Job Security, Slash Pensions, Increase Health Care Costs

With Days Remaining Before Contract Expiration, CWA and IBEW Demand Good Jobs, Verizon Commitment to Good Service

New York – The Communications Workers of America announced today a series of seven radio ads slamming Verizon’s failure to build out universal FiOS broadband across the East Coast. The 30-second ads are scheduled to begin running Wednesday across NYC/New Jersey, Upstate New York, Massachusetts, Pennsylvania, Maryland, Virginia and Delaware [full scripts below and audio files can be heard here]. 

Listen to the ad for Massachusetts

The ads come on the heels of an announcement that 86% of Verizon workers voted to authorize a strike if necessary. Their labor contract expires at 12 midnight on Saturday August 1 and covers 39,000 CWA and IBEW represented telephone workers from Massachusetts to Virginia.

“Verizon isn’t doing right by their customers or their workers. The company made $9.6 billion in profits in 2014, and reported $4.4 billion in profits just in the 2015 second quarter alone, yet refuses to build its high-speed FiOS network in numerous areas across Verizon’s footprint, especially in lower-income cities like Baltimore, Buffalo and Bethlehem, PA. At the bargaining table, management has refused to budge off harsh contract demands that unfairly penalize the hard-working men and women who make Verizon work,” said Bob Master, Legislative and Political Director for CWA District One. “We reject these demands, and we’re fighting to ensure that Verizon’s workers and customers get the good jobs and good service they deserve.”

The union and its supporters point to the company’s refusal to build out its state-of-the-art FiOS network and its lack of investment in maintaining the original copper network. 

A damning audit of Verizon’s FiOS rollout in New York City found that Verizon has failed to meet its promise to deliver high-speed fiber optic internet and television to everyone in the city who wanted it.  During its negotiations for a city franchise, Verizon promised that the entire city would be wired with fiber optic cables by June 2014 and that after that date, everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming that it had wired the whole city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found that Verizon stonewalled the audit process. 

And recently, a PSC Staff Report on Telecommunications in NYS found: “Aging copper plant is an issue in both urban areas of New York, where Verizon’s fiber technology may run parallel to copper, as well as in rural areas, where fiber deployment is less prevalent…In many areas of New York City, the legacy copper infrastructure is in such poor condition that copper failures due to weather conditions can cause long delays for service restoration and Commission service quality standards are missed.” 

Background On The State Of Negotiations With Verizon

39,000 workers are currently negotiating new contracts at Verizon.  Fortune Magazine ranked Verizon the 15th largest corporation in America in 2014, with revenues of $127 billion, profits of $9.6 billion, and market capitalization of $198.4 billion. Verizon had profits of $28 billion over the last five years, and paid its top five executives $249 million during that time.  

On July 21st, Verizon reported profits of $4.4 billion in 2Q2015 on revenues of $32.2 billion. The company also reported that during the first six months of 2015 it has paid out over $9.3 billion to shareholders in dividends and stock buybacks, an increase of almost $5.8 billion over the first half of last year. In the Wireline division, Operating Cash Flow rose to 23.5%, and operating income doubled, from 2.6% to 5.3%. FiOS continues to expand and succeed, now constituting 79% of Verizon consumer revenues on the wireline side, and achieving penetration rates of 35.7% for video and 41.4% for internet in markets where it is competing. 

But at the bargaining table, the story is different. Verizon is demanding:

  • Elimination of long-standing job security protections including protections against layoffs and forced transfers.
  • Slashing retirement security.
  • Sharply increasing health care cost contributions.  Higher deductibles, co-pays and premium sharing.  Remove the union’s right to negotiate over retiree health care.
  • Vastly increasing ability to contract out of work.
  • Off-shoring call center jobs.
  • Elimination of cost-of-living raises.
  • Eliminate Accident Disability Plan for workers injured on the job.
  • Eliminate 20-year old Family Care Leave policy.

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Public Pressure Pushes T-Mobile US to Provide Fairer Paid Parental Leave Policy

 CWA-blue-line

WASHINGTON, D.C. – Responding to growing public pressure and local government initiatives, T-Mobile US announced this week that it would be adopt a paid parental leave program. The company also said it would end an oppressive policy that required call center workers to be on the phone 96.5% of their work time, leaving them with virtually no time for follow up on customer issues or to make changes in customers’ accounts as needed.

This is great news for workers who often must struggle to balance family and career. It comes as workers at T-Mobile US and a coalition of community supporters in cities like Albuquerque, N.M., step up efforts to restore a fair workweek and achieve other improvements for workers.

Members of TU, the union of T-Mobile workers, the Communications Workers of America and many organizations, including the Center for Popular Democracy, OLÉ and other coalition partners, have been raising concerns about unfair scheduling and other issues for workers at T-Mobile US and other employers.  Workers want a voice in the decisions that affect them in their workplace — not just the ones that the company selectively picks and chooses. That’s why T-Mobile US workers are joining TU.

T-Mobile US’s initial scheduling changes were made just as the Albuquerque City Council was moving forward to consider a proposal to implement paid sick leave and scheduling improvements. The Albuquerque coalition hosted a town hall meeting on irregular scheduling, where Albuquerque City Council members pledged to support their fight for a fair workweek including the right to take sick leave without retaliation.

A recent National Labor Relations Board (NLRB) decision found T-Mobile guilty of engaging in illegal employment policies that prevented workers from even talking to each other about problems on the job. The judge ordered the company to rescind those policies and inform all 46,000 employees about the verdict. 

Parental leave is a good first step toward helping workers balance their career and family responsibilities. But workers want real bargaining rights and the right to fairly choose union representation. That’s what T-Mobile must realize.

Thank You To Those Who Voted Against The TPP, However The Fight Is Not Over

Working Families Have Spoken And Washington Was Listening.

Yesterday, the US House of Representatives held a vote on the controversial Trans-Pacific Partnership (TPP), which failed by a 126 to 302 vote, due to strong opposition from House Democrats.

For months, progressives and labor advocates have been speaking out against the TPP. Senators Warren and Sanders have made their opposition to the TPP a main talking point in all of their recent speeches. They spoke out because the White House was negotiating the TPP in secret. What little information has been leaked on the proposed deal shows that the deal would be harmful to American workers, continuing the failed policies of the North American Free Trade Agreement.

The Fast Track legislation narrowly passed the Senate however House Minority Leader Nancy Pelosi rallied House Democrats against it.

“Nancy Pelosi has always fought for working families and today her leadership on the trade package vote was instrumental in the House voting against another bad trade deal,” said Richard Trumka, President of the AFL-CIO. “She stood up against corporate interests and as always put first the people who are too often left out of trade agreement discussions. I applaud Rep. Pelosi’s bravery and leadership on this and look forward to working with her on good trade bills.”

“The House leadership tried to use a gimmick to push Fast Track through Congress. In rejecting an extremely weakened Trade Adjustment Assistance (TAA) package, representatives today stood with working families who want good jobs and thriving communities,” wrote the Communication Workers of America (CWA).

House Democrats like Rep. Annie Kuster (NH-02) truly understand why it is important to stop this Fast Track legislation.

“Every day, I’m fighting to support New Hampshire workers, small businesses, and family farms, which all deserve a strong say in our nation’s trade policies. I believe the trade promotion authority legislation currently before Congress fails to give these groups a real seat at the table, and fails to include necessary protections for American jobs and workers, which is why I plan to vote against it,” said Kuster in a written statement just days before the vote.

“The New Hampshire AFLCIO is especially proud of Congresswomen Kuster who stood strong in the face of tremendous political pressure to do what was best for New Hampshire workers and workers everywhere,” said Mark MacKenzie, President of the NH AFL-CIO.

It was not just Leader Pelosi who made this vote against the TPP a reality. It was the combined actions of millions of hard working Americans who lobbied their Congressional Representatives to oppose this secret trade deal.

“American workers came together and spoke with one voice about the path their country and economy should follow. We are very grateful for all the activists, families, community leaders, and elected officials who worked so tirelessly for transparency and worker rights in international trade deals,” Trumka said.

“This is a victory for hard-working men and women all across America. In the face of long odds, the American people sent a powerful message that their interests trump narrow political agendas and special interests,” said Marc Perrone, International President of the United Food and Commercial Workers (UFCW).

“Today, we saw elected leaders stand up and make clear that the failed promises of global trade agreements, which only seem to serve irresponsible corporations, must come to an end. More importantly, we have seen what hard-working families can accomplish when we stand together and fight for what is right for both workers and this nation,” Perrone said.

“We keep score. We see the Democrats and the Republicans that stood with us. TAA was the only way to get Fast Track through, and despite the efforts of the President, TAA failed. The subsequent vote on Fast Track itself proved this as we failed to stop Fast Track by a margin of eight votes – just a difference of four votes either way. House Democratic Leader Nancy Pelosi got it right when she said that Democrats have always supported TAA but not as a path to Fast Track,” said CWA past President Larry Cohen, leader of the coalition work on Fast Track.

CWA President Chris Shelton said, “I’ve never been prouder of our union and the work CWA members do. We’ll continue to fight back and build the movement we need.”

Organized labor relied heavily on their progressive allies, like CREDO Action to help spread the word of the dangers of passing this “NAFTA on steroids,” Fast Track legislation.

“The failure of the White House to win a key vote to advance Fast Track Authority for the TPP shows that the millions of Americans who spoke out against job killing trade deals are making a big difference despite an all out effort by Wall Street lobbyists, the Chamber of Commerce, and the White House to ram this through,” said Murshed Zaheed, Deputy Political Director at CREDO Action.

However the fight over the TPP is far from over. House leadership has already stated that they will hold another vote on the Trade Authorization Assistance package early next week.

“This fight is not over,” Zaheed continued. “CREDO will continue to fight against Fast Track and any treaty that puts the rights of multinational corporations over the rights of the American people.”

We need our elected leaders to stay strong against the fierce lobbying arm of Wall Street and Big Business.

“We must fully defeat Fast Track, so that Congress can work for trade deals that give working families at least as much standing as corporations. We need 21st century trade that works for all of us, not just investors and multinational corporations,” wrote the CWA.

“Our broad coalition of Americans — representing millions of union members, environmental activists, immigrant rights advocates, people of faith, students, public health and consumer advocates, community leaders and so many more — will keep up the fight until Fast Track is defeated,” CWA concluded.

The New Hampshire Labor News would like to thank all of the Representatives who chose to stand with working families in opposition to this disastrous trade agreement. We the people have spoken and we thank you for listening! We hope that you will continue to stay strong in your opposition and defeat this disastrous trade agreement once and for all.

The “Fast Track” Bill For The Trans-Pacific Partnership Hit The Floor Of Congress Today, Labor Responds

It was only a matter of time until the multi-national corporations who helped fund the campaigns of many of the politician’s in Washington pushed for another trade agreement that will make them billions of dollars, and leave millions of American workers without a job.

Today the “Senate’s Bipartisan Congressional Trade Priorities and Accountability Act of 2015” hit the Congressional floor. The deal was brokered by Senator Orin Hatch (R-Utah), Senator Ron Wyden (D-Oregon), and Chairman of House Ways and Means Committee Representative Paul Ryan (R-Wisconsin).

The New York Times spelled it out pretty well:

“It would give Congress the power to vote on the more encompassing 12-nation Trans-Pacific Partnership once it is completed, but would deny lawmakers the chance to amend what would be the largest trade deal since the North American Free Trade Agreement of 1994, which President Bill Clinton pushed through Congress despite opposition from labor and other Democratic constituencies.”

President Obama has already said he will oppose the unions — who help him win two elections — and his fellow democrats to get this trade agreement passed.

Richard_Trumka“At a time when workers all over the country are standing up for higher wages, Congress is considering legislation that will speed through corporate-driven trade deals,” said AFL-CIO President Richard Trumka. “For decades, we’ve seen how fast-tracked trade deals devastated our communities through lost jobs and eroded public services. We can’t afford another bad deal that lowers wages and outsources jobs. That’s why Congress must reject Fast Track (TPA-2015) and maintain its constitutional authority and leverage to improve the TPP and other trade deals.”

Trumka continued, “Trade deals have wide-ranging impacts and shouldn’t be negotiated behind closed doors and then rubber-stamped. The current Trans-Pacific Partnership deal under discussion would cover 40 percent of the world’s GDP. A deal this big should be debated in a full and open manner like every other piece of legislation. Working people are showing tremendous courage standing up to the low-wage, corporate agenda. It’s time for politicians to do the same.”

Labor unions and progressive advocates have been calling for more transparency in this ginormous trade agreement. The White House has been negotiating this deal in secret, while assuring everyone that this will not be another NAFTA. The problem is that every time new information about the trade agreement is leaked, it shows exactly the opposite. More gifts to Wall Street and Corporations while the American people suffer.

“The proposed Fast Track bill fails all the tests that Senator Ron Wyden said were critical: Trade Adjustment Assistance, transparency, action to combat currency manipulation, real enforcement of environmental and worker standards, and procedures to enable Congress ‘to right the ship if trade negotiators get off course,’ as Wyden put it. Since this legislation requires a supermajority, or 60 votes, for the Senate to remove the TPP or any subsequent deal from Fast Track consideration, this provision is virtually meaningless,” wrote the Communication Workers of America in a statement late this afternoon.

Larry Cohen CWA“We need to put the brakes on Fast Track or Trade Promotion Authority. Just like the TPP itself, there has been no transparency around Trade Promotion Authority. We’ve had the start of a Senate hearing even before a bill was finalized and introduced. Now, that legislation is headed to mark up and a floor vote in just days. Trade Promotion Authority pretends to be about trade, but in reality it is about protecting corporate profits above all else and defining our national security in terms of giving away our jobs, depressing our wages and then rewarding the responsible multinational corporations, often U.S. based, with guaranteed profits in the nations where they invest,” said CWA President Larry Cohen.

Leo W Gerard, International President of the United Steelworkers union wrote in his weekly column about how “illegally subsidized steel” is coming into the United States and forcing more workers out on the streets. “American steel producers laid off thousands of workers in bedrock communities from Ohio and Illinois to Texas and Alabama. That’s in just the past three months.”

“NAFTA has led to the loss of 1 million American jobs,” said Senator Bernie Sanders on the floor of the US Senate in late February. “Since we signed NAFTA the United States has cumulative trade deficit of 8.8 trillion dollars. That is wealth that has left the U.S. and gone overseas.”

It is not just the manufacturing unions who are speaking out against the Fast Track and the TPP.

The UFCW supported the last major trade agreement with Korea because of its improved labor standards and potential to create 20,000 jobs in the meat sector. But in his op-ed, Perrone makes clear that this time is different.

“The Trans-Pacific Partnership (TPP) is not the Korea free trade agreement,” he writes. “It is neither free nor fair. And the UFCW is determined to see it defeated.”

AFT President Weingarten  (Photo by Bruce Gilbert)

AFT President Weingarten (Photo by Bruce Gilbert)

Randi Weingarten, President of the American Federation of Teachers and an outspoken progressive also spoke out against the agreement.

“At a time when we need to be focused on creating and sustaining good jobs for American workers, fast track would undermine these efforts, leading to trade deals that hurt everyday working people and stack the deck in favor of corporations. And it would do this in a secretive way, with limited public and congressional oversight and no effective enforcement,” said AFT President Randi Weingarten.

She continued, “Our nation’s trade policy should help put us on a path toward lifting all Americans’ quality of life—ensuring rights for workers, protections for consumers and safeguards for the environments. That’s why we need a democratic and transparent trade process that offers a fair shake for American workers. This bill is over-reaching and will fail to keep working families and our economy strong.”

“We send our elected leaders to Washington to be our voice,” said AFT Secretary-Treasurer Lorretta Johnson. “Under fast track, Congress will have no say in selecting our trade partners, negotiating trade terms, or debating and amending trade agreements. This bill panders to corporate profiteers, while ignoring the voices of everyday American workers, who are fighting to oppose it.”

Now we need everyone to stand up and put an end to this monumental race to the bottom.

10492525_10153211806206153_8036817465541163150_nUses your cell phone to text TPP to 877877 and you can be connected directly to your Congressman or Senators office to tell them to vote no on this legislation. Or call the Senate directly at 1-855-790-8815 and tell them that “Fast Track means bad trade deals that ship American jobs overseas.”

Then take part in a National Day of Action to Stop Fast Track this Saturday, April 18th. Click here to find an event near you.

The AFL-CIO has more information on the TPP and “Fast Track” legislation on their website.

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